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WASHINGTON (OP)-Citing the
rush on gold and increasing costs
of the war in Vietnam, Secretary
of the Treasury Henry H. Fowler
said yesterday it is necessary that
Congress boost income taxes with-
in 30 days.
But his recommendation that
taxes be increased twice as much
as the 10 per cent surcharge pro-
posed by President Johnson last
August made no noticeable im-
pact on the man most responsible
for congresssional inaction.
"I don't have enough informa-
tion to comment one way or the;
other," said Chairman Wilbur D.
Mills (D-Ark), of the House Ways
and Means Committee when asked
about Fowler's statement.
Surtax3
Johnson's surtax proposal is'
bottled up in Mills' committee.;
Asked by newsmen whether there
might be another meeting on iti
soon, Mills replied: "It is always
before us."
But he said Fowler, in a closed
session with the committee yes-
terday, did not discuss the in-;
come surtax.
Fowler made his plea for a

quick, hefty tax boost before thet
companion Senate Finance Com-
mitee, which is considering aj
House passed bill to produce $4.2
billion in revenue by continuing
present auto and telephone excise
tax rates and speeding up corpo-
ration tax payments.
To a suggestion that it might
be a good idea to go back to the
income tax levels in effect before
a cut in 1964, Fowler said that
would produce about $22 billion'
a year, as against the $10 billion
under Johnson's proposal.
"I would welcome this," the sec-I
retary said.I
Fowler put the European rush 1
to buy gold-indicating a growing
lack of confidence in the dollar-
at the top of his reasons for en-
acting an income tax increase Atf
once.
He .cited five factors:
0 "The highly volatile situation
in the international monetary
markets now is threatening the
very preservation of the interna-
tional monetary system as we
know it.
Clear indication that the Fed-
eral Reserve is on the move in the;

direction of increased
restraint because of the
pass a tax bill.

mone
failur

! "It is now clear we may be:
faced with increased federal ex-
penditures beyond the figures in
the President's budget submitted
in Janaury because of events in
the intervening period in Viet-
nam.
! "The increased pace of the
economy generally calls for more
restraint.
! "Our trade surplus is being
reduced to an extent that may -
offset the efforts we are making
to reduce our balance of pay- TWICE RECIPIENT of the "Det
ments deficit .. winner while serving with his un
Travel Tax The picture was transmitted fro
One of the steps Johnson has
urged to combat the dollar drain
is a tax on travel outside this u E C o m
hemisphere, discouraging tourism,. -"~-- ~ni
cess on that issue : Mills an-!OC
nounced that the Ways and Means
Committee has begun drafting
such a bill. This is an interme- SAIGON (M-The U.S. Com-
diate step usually indicating the mand announced yesterday the
committee intends to report a bill;mn none etra h
to the House.r t first substantial cut in months in
The administration proposed a its estimate of enemy forces inf
tax on overseas transportation, re- South Vietnam, reckoning that the
dudtion of custom free privileges Viet Cong and infiltrated North
for tourists bringing in goods, and Vietnamese now total from 207,000:
a tax on dollars spent abroad. to 220,000.
Mills wouldn't detail what the That would be a drop of from{
committee draft may contain. 16,000-28,000 from the previous

-Associated Press
termined to Win" title and a Liberation Order Third Class medal
it near Hue, Nguyen Xuan Ba, center, is an important Viet Cong.
om Hanoi.
iand Cuts Estimate
tnts Forces in South

h.- - -- - - -

LIVE IN AN INTERNATIONAL
COMMUNITY THIS SUMMER!
Summer sublets are still
available at the
ECUMENICAL CAMPUS CENTER
RESIDENCES, 917-921 Church,
327 S. Division
Furnished apartments for 2, 3, or 4 persons, most with
dishwashers, garbage disposals, and air-conditioners.
Recreation room and lounge available to residents
Nationality dinners, discussions, trips will be planned.
For information, contact the
ECUMENICAL CAMPUS CENTER
921# CHURCH ST. - 662-5529

figures. despite enemy recruiting'
and infiltration to make up for
the loss of thousands of troops-
more than 50,000 by U.S. report
-in the lunar new year offensive.
The estimate had been 223,000
to 248.000.
On the other hand, American
combat deaths through seven years
of war in Vietnam evidently have
E n r nccrithn 9n n mnk ThA

suns Sy racu i
vr% RQAT OForeig
oED SOMaximum
gra

_ now passed Te z,uu mar. .ne
U.S. Command said 509 American
servicemen were killed last week,
se Universit ushing the total to 19,760. Scores
have fallen since.
The allies, forced to divide man-
power between garrison and field
n 6 undergraduate or duty, are building toward a total
aduate credits of 1380,000 by the end of June.
zduoe crditsOf these, 525,000 would be Amer-
N FLORENCE, ITALY icans.
in painting, drawing, art history Tie ambus of a 30 truck con-
voy yesterday on a main highway
f Syracuse University only nine miles northeast of Sai-
use, New York 13210 gon, though a relatively minor in-
cident, demonstrated a still press-
- -

ing threat of Viet Cong forces
around the capital.
Enemy riflemen and machine
gunners lying in wait along Route
1A, which carries thousands of
allied vehicles daily, fired on the
convoy as it moved north toward
the big U.S. base at Long Binh.
One U.S. soldier and one of the
enemy were killed.
Damage to the convoy, made up
of 11 military and 19 civilian ve-
hicles, was described as light.
Ky's Invasion
In other developments Vic.e
President Nguyen Cao Ky, who
led a 24-plane squadron in the
first air raid against North Viet--
nam Feb. 8, 1965, said yesterday
he will accompany a projected in-
vasion if and when It marches
north.
"We have to shed our own blood
to bring about the success of our
country, not depend on the as-
sistance of the allied forces," Ky
said in a speech to Roman Catho-
lic villagers 15 miles north of
Saigon.
"To say Down with the Com-
munists' is not enough. You have
to say 'Down with the Communists,
Communist hench men and co-
lonialists.' We Iwill kill all of them
and not let one remain alive.
"If necessary I will be the first.
I will sacrifice myself."

Hit Reco
LONDON iP')-Gold buying in
Western Europe hit a record high
yesterday despite the efforts of
dealers to check the stampede to
get rid of paper money.
The pound slipped to a -historical
low in London. The dollar weak-
ened everywhere except in Paris.
Bankers, dealers and economists!
said that only determined, posi-
tive action by the U.S. Treasury,
can stave off a world collapse of
confidence in monetary values.
"What we would like now are
not reassuring statements but real
measures," a Swiss banker said.
In an attempt to stem the gold
buying fever, the Federal Reserve
Board yesterday clamped a tighter
reign on credit by raising the dis-
count rate to 5 per cent.
The present rate is 4.5 per cent
and the new rate is the highest
since just before the 1929 stock
market crash.
Pressures
The board said the increase is
designed "to strengthen the inter-
national position of the dollar andi
to curb inflationary pressures in
the domestic economy."
The panic buying in Europe was
greatest in Paris, where sales near-
1y trebeled Wednesday's record of
16 tons to an unheard of 45 tons.
Sales in London, by far the big-
gest bullion market in the world,
were estimated at more than 200
tons. Zurich's were estimated at
more than 100 tons even though
major banks suspended sales two
hours early.
The small Frankfurt market re-
corded tremendous sales by its
scale although no figures were
available.
Similar scenes were repeated in
metal markets in silver, platinum,,
palladium and5even copper.
450 Tons
According to the best estimates
available, the international gold
pool has had to supply a minimum
of 450 tons of gold so far this
week.
How long will it last and how
can it be stopped?
In London, Paris and Zurich,
dealers took action of their own
accord to calm nerves and make
buyers stop and think,
In London they raised the price
to the highest level since the for-
mation in 1960 of the seven nation
gold .pool: $35.26. They also re-
fused to accept small orders for
a gold piece or a handful of gold
Napoleons. In Paris, dealers raised

rd High
the price to the prohibitive level
of $35.90.
Many in Britain, Switzerland
and elsewhere privately criticized
the U.S. Congress for delays in re-
moving the dollar's gold cover to
make available for the battle
against speculators about $10 bil-
lion worth of gold.
Others expressed irritation at
what they considered to be U.S.
congressional delays in enacting a
10 per cent surtax and determined
action to reduce the balance of
payments deficit.
EthicsCode
Reported to
House Floor
WASHINGTON (P-An eight
point code of ethics featuring a
limited financial disclosure re-
quirement was recommended to
the House yesterday by its Com-
mittee on Standards of Official
Conduct.
It was the product of almost a
year of work by the committee
headed by Rep. Melvin Price,
(D-Ill), and composed of six Dem-
ocrats and six Republicans.
It would, if finally aprpoved, ap-
ply to members, officials and em-
ployes of the House, but the fi-
nancial disclosure provision could
apply to relatives and close busi-
ness associates of members.
The House group, created after
the investigation of former Rep.
Adam Clayton Powell (D-NY),
beat a similar Senate committee
to the punch. The Senate group
will report its ethics code next
week. It was spurred to action by
the financial transactions of the
censured Sen. Thomas J.. Dodd
(D-Conn).
Conflict
The House committee indirectly
conceded that its proposal on con-
flict of interest wouldn't be a com-
plete deterrent to any member
seeking to sell his vote or in-
fluence.
"Common sense." it said, "sug-
gests that, if an outright bargain-
ing of one's legislative influence
could be contemplated, the same
person would not hesitate to fal-
sify any type of filing imposed
upon him."
The filing provisions referred to
would require public disclosure of
ownership of interests of $5,000
or more in any business "doing
a substantial business" with the
government or subject to govern-
ment regulation, or from which
income of $1,000 or more was
received in the preceding year.

YOUTH MATINEE-ALL SEATS 75c
Sat.-11:00-1 :00, Sun.-1 :00
JERRY LEWIS
"THE FAMILY JEWELS"
Theatre will be cleared before 3:00 show

DETROIT NEW CINEMA
NOW AT THE STUDIO I THEATRE
Livernois at Davison
Phone: WE 3-0070
A NEW PROGRAM OF UNDERGROUND
FILMS EACH WEEK
EVERY FRI. and SAT.-1 1:30 P.M. & 1:00 A.M.
SPECIAL SUN. MATINEE-3:00 P.M.
FEATURE BONUS:
camp, classic, and comedy along
with regular underground films
March 15, 16, 17
"RELATIVITY" by EmShWiller-winner
of New York Film Festival 1966
"HOLD ME WHILE I'M NAKED"-by
George Kuchar
"MASS"-by Bruce Baillie, Grand Prize
Ann Arbor Film Festival, 1964
"A PURITAN STREAK"-by Rhewdnal
NEXT WEEK
"THE SIN OF JESUS-by Robert Frank
"THE SECRET CINEMA"-by Paul Bartel
"THE AMERICAN WAY"-by Starkman
"SMALL BLACK MASS"